Capilano Honey report huge growth

Capilano Honey has reported a large increase in net profit before tax at $2.9 million, for the six month period ended 31 December.

The figure is more than twice last year’s $1.02 million profit, and the Company’s revenue has risen to $43.2 million from $33.8 million.

“After considering the impacts that the fire insurance claim reimbursements have had on the company’s income, this result shows notable improvement in both revenue and profit in the underlying business” Managing Director Ben McKee said in a statement. In September 2012, hundreds of tonnes of honey were destroyed after a fire in Capilano’s Richlands factory, in southwest Brisbane.

Capilano’s shares reached a record $4.90 on 10 February 2014, rising 23.7 per cent. The Company moved from the Bendigo exchange to list on the Australian Stock Exchange in July 2012.

The Company’s acquisition of Western Australian honey company Wescobee last year is attributed as having helped in improving its retail sales mix and targeted synergies.

Interest bearing debt has been reduced to $10.3 million, down from $16.3 million six months ago, and $12.7 million one year ago, and current cash and cash equivalents stand at $0.57 million.

The average cost of honey for the second half of 2013 rose to AUD$3.49/kg, compared to AUD$3.36/kg in the previous year. Unfavourable weather conditions are noted to have affected this price rise, and McKee noted that the company is preparing itself for heightened costs of raw materials.

Export sales have grown and the Company has begun wider distribution throughout Asia.